Indonesian Political, Business & Finance News

House to quiz aircraft company directors over lockout

| Source: JP

House to quiz aircraft company directors over lockout

Yuli Tri Suwarni, The Jakarta Post, Bandung, West Java

The five members of the board of directors of state-owned
aircraft company PT Dirgantara Indonesia (PT DI) have been
summoned by the House of Representatives to clarify the
controversial decision to shut down the firm and suspend its more
than 9,000 employees.

The directors must appear before House Commission VII for
manpower affairs next Tuesday to clarify the decision issued by
PT DI president Edwin Soedarmo on July 11, legislators said on
Friday.

Edwin is facing a lawsuit filed in the Bandung Administrative
Court by the suspended workers, who claim their suspension is
illegal because the order was only signed by Edwin and another
director.

PT DI human relations manager Rakhendi Triyatna said his
company had yet to receive a summons from the House, but added
that if summoned the board members would appear.

"We have stated several times that the suspensions were the
best measure to boost efficiency and rearrange the company so as
to survive," he said.

House member Cecep Rukmana said the company's management had
to address its problems transparently, including the system of
paying wages which has been blamed for alleged irregularities at
the firm.

He and two other legislators -- Ambia Gustaf and Afni Ahmad --
held a meeting on Friday with executives of the company's labor
union to discuss matters.

The three House members backed the workers' protests and urged
the directors to cancel the suspension in order to maintain
stability at the plant.

"Any decision to shut down a company should be discussed with
and approved by the workers," Cecep said. "In the case of PT DI,
the suspension was a surprise announcement."

Edwin said the company made the decision because of severe
financial problems.

However, he promised to bring back 3,000 of the workers
gradually, apparently bowing to intense pressure.

Cecep said the House also would summon State Minister for
State Enterprises Laksamana Sukardi to discuss his plan to
privatize PT DI.

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